Yes Bank shares bounce back sharply, zoom over 45% after announcement of restructuring plan; market valuation rises by Rs 2,946 cr to Rs 9,462 cr
Yes Bank had on Saturday reported Rs 18,564 crore loss in December quarter.
New Delhi: Yes Bank shares on Monday jumped sharply by over 45 percent after announcement of a restructuring plan.
The scrip witnessed a strong comeback and zoomed 45.21 percent to close at Rs 37.10 on the BSE. During the trade, it climbed 58.12 percent to Rs 40.40.
At the NSE, it rose sharply by 45 percent to close the day at Rs 37.05.
Led by the sharp gain in share price, the company's market valuation rose by Rs 2,946.25 crore to Rs 9,462.25 crore on the BSE.
A total of 1.84 crore shares were traded on the BSE during the day, while over 16.65 crore shares changed hands on the NSE.
Yes Bank had on Saturday reported Rs 18,564 crore loss in December quarter. Its gross non-performing assets also shot to 18.87 percent in December 2019 quarter against 2.10 percent in the year-ago period.
"Lifting of deposit withdrawal moratorium on 18 March could open flood gates and will require a calibrated approach along with active support/signaling from the RBI/govt/investor banks. The reconstituted bank board too may need more turnaround experts and eminent bankers," according to a report by Emkay Global Financial Services.
As per a research report by JM Financial Institutional Securities, "Over the weekend, GoI declared the final restructuring plan for Yes Bank, which also declared its Q3 FY20 financial results. The restructuring scheme for the bank came into effect on March 13, 2020 and the moratorium on the bank will be lifted at 6 pm on 18 March. Yes Bank issued 10 billion equity shares to 8 financial entities."
After falling by around 3.5 percent on Monday, the BSE Sensex reclaimed the 48,500 mark while the NSE Nifty traded above 14,500
Market Roundup: BSE, NSE close flat after volatile trading day; Asian Paint, Sun Pharma among top gainers
The top five gainers of the day were Asian Paint, Sun Pharma, Hindustan Unilever, HDFC and Dr Reddy. Power Grid, Axis Bank, IndusInd Bank, and ICICI Bank were among the worst performers
Market Roundup: Sensex surges 460.37 points, Nifty closes at 14,819.05 after RBI policy; banking stocks lead
The Reserve Bank of India kept the repo rate unchanged at four percent in its monetary policy meeting earlier today